Suppose that you own a house. What is the opportunity cost of living in the house?
A. There is no opportunity cost because you own the house.
B. There is no opportunity cost unless you could set up a business in the house.
C. The opportunity cost is the rent you could have received from a tenant if you didn't live there.
D. The opportunity cost is the cost of your monthly mortgage payment plus bills.
Answer: C
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Advertising has no effect on the demand schedule for a good.
Answer the following statement true (T) or false (F)
The provision of funds to the mortgage market through the purchase of mortgage-backed securities and mortgages is performed by ________
A) Fannie Mae and Freddie Mac B) the Federal Housing Administration C) the Federal Reserve System D) subprime borrowers
In 2012, Trailblazer Bicycle Company produced a mountain bike that was delivered to a retail outlet in November 2012. The bicycle was sold to E.Z. Ryder in March 2013. This bicycle is counted as:
A. consumption in 2012 and as negative investment in 2013. B. negative investment in 2012 and as consumption in 2013. C. negative investment in 2012 and as investment in 2013. D. investment in 2012 and as negative investment in 2013.